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The Chocolate Market


Attention: There is an updated edition available for this report.

This Packaged Facts report on the chocolate market, whose U.S. sales alone currently exceed $14 billion, analyzes sales and growth potential for chocolate candy; chocolate chips/baking chocolate; powdered cocoa mixes; and chocolate syrup/dessert toppings. It examines trends driving the market and offers sales projections through 2005. Coverage includes marketer and brand shares based on Information Resources, Inc.'s InfoScan sales-tracking data, marketing and new product trends, advertising, and distribution and retail trends. Included are special focus sections on the international chocolate scene, mass versus gourmet/premium products, adult versus kids' products, seasonal and novelty products, niche product positionings, and more. The report contains detailed consumer demographic profiles based on Simmons Market Research Bureau data for spring 2000, as well as more than 20 competitive profiles of U.S. and foreign players.


Press Release

Candy Makers Move To Fulfill America’s Chocolate Craving

NEW YORK, NY – February 1, 2001 – MarketResearch.com, the business information center, announced today the release of a new research study “The U.S. Chocolate Market”, from Packaged Facts™. According to this report, from 1996 to 2000, the chocolate market enjoyed a total growth rate of 19.1% with retail sales in 2000 producing a whopping $13.7 billion.

“Despite this increase in chocolate sales, the U.S. candy market has not yet matured, leaving room for continued growth.” said Marzia Marzi, Director of Marketing for MarketResearch.com. “U.S. per capita consumption is 12.2 pounds, whereas in Switzerland, per capita consumption is 22.4 pounds - twice that of the American consumer.”

Chocolate marketers are investing deeply in products that will capture baby boomers and teens. The U.S. Census Bureau projects that by 2005 the population of baby boomers will increase by more than two million, and the teenage population is expected to represent 7.3% of the total U.S. population in the same time period. Gourmet boxed chocolates and specialty dark chocolates, organic and functional chocolates (focusing on adult issues of health concerns and the environment) fulfill the comfort factor and concerns of the graying population. Since teens between the ages of 15-19 consume more candy than any other age group, targeting the teenage market has challenged chocolate marketers to produce more products and reposition classic items.

Scope and Methodology

Market Parameters

This report covers the U.S. retail market for chocolate, focusing on four prod-uct categories: chocolate candy, chocolate chips/baking chocolate, powdered cocoa mixes, and chocolate syrup/dessert toppings. It includes mass-market and gourmet offerings.

It excludes a wide range of product categories that may contain chocolate, co-coa, or chocolate as flavorings, but whose primary definition is not one of "choco-late," such as liquid chocolate milk; cookies, cakes, and other baked goods; cake mixes, frostings, and cake decorations; ice cream, puddings, and other desserts; co-coa-flavored cereals; and chocolate-flavored dietary supplements. Likewise excluded are products that use carob as a substitute for chocolate.

Given its retail focus, this study does not cover commercial, foodservice, or fund-raising sales.

The International Scene

Although this report concentrates on the U.S. retail market for chocolate, it gives some attention to the international scene, particularly vis-à-vis international trends that may impact the U.S. market and marketers.

Report Methodology

The information contained in this report was obtained from both primary and secondary research. Primary research entailed consultation with industry sources and on-site examination of the retail milieu. Secondary research entailed data gathering from relevant trade, business, and government sources, including company literature and corporate annual reports. Packaged Facts has derived sales figures from sources such as Information Resources, Inc. (IRI), the National Confectioners Associa-tion/Chocolate Manufacturers Association (NCA/CMA), Candy Industry, Supermar-ket Business, Retail Merchandiser (formerly Discount Merchandiser), Drug Store News, and the National Association of Convenience Stores (NACS). Figures pro-vided on national consumer advertising expenditures are based on data (copyright 2000) compiled by CMR, a Taylor Nelson Sofres company and the nation’s largest advertising tracking service. The analysis of consumer demographics derives primar-ily from Simmons Market Research Bureau data for spring 2000.

Issues Addressed:

  • Current and Projected Market Growth
  • Factors In Future Growth
  • Marketing/Product Trends
  • Mass Market vs. Premium and Gourmet Chocolate
  • Seasonal and Novelty Chocolate
  • Niche Products (Organic, Sugar-Free, etc.)
  • Adult vs. Kids’ Products
  • Channels of Distribution and Retail
  • Internet Retailing
  • Consumer Advertising Expenditures
  • Positioning In The Marketplace

Companies/Sites Discussed:

  • Hershey Chocolate USA (Hershey Foods Corp.)
  • M&M/Mars (Mars, Inc.)
  • Nestle USA, Inc.
  • Archibald Candy Corp.
  • Brach’s Confections, Inc.
  • ConAgra, Inc. (Swiss Miss cocoa)
  • Godiva Chocolatier, Inc. (Campbell Soup Co.)
  • Kraft Foods, Inc.
  • Lindt & Sprungli USA (Lindt and Ghiradelli divisions)
  • Hawaiin Vintage Chocolate Co., Inc.
  • R.M. Palmer Co.
  • Russell Stover Candies, Inc.
  • Tootsie Roll Industries, Inc.

Categories Covered:

  • Chocolate Candy
  • Chocolate Chips/Baking Chocolate
  • Powvdered Cocoa Mixes
  • Chocolate Syrup/Dessert Toppings

Tables and Graphs:

  • Market Size and Growth
  • Share of Retail Market by Category
  • Per Capita Consumption of Chocolate Candy
  • Selected Marketers and Their Brands
  • Selected International Marketers and Their Brands
  • Marketer and Brand Shares
  • Demographic Breakouts

Hours of Research: 600

  1. Executive Summary
    • Scope and Methodology
    • Market Parameters
    • The International Scene
    • Report Methodology
    • The Market
    • Market Definitions
    • Four Major Categories
    • Non-Seasonal vs. Seasonal Candy
    • Mass-Market vs. Gourmet
    • Federal Regulations
    • Retail Sales $13.7 Billion
    • Table 1-1: Retail Sales of U.S. Chocolate Market, 1996-2005 (dollars): Candy, Other Chocolate Categories
    • Gourmet/Premium Chocolate Market Difficult to Measure
    • Mass-Market Sales at $5.9 Billion
    • Mass-Market Chocolate Candy Sales Approach $4.9 Billion
    • Table 1-2: U.S. Mass-Market Retail Sales of Chocolate by Category, 1996-2005 (dollars): Chocolate Candy, Chocolate Chips/Baking Chocolate, Powdered Cocoa Mixes, Chocolate Syrup/Dessert Toppings
    • Per Capita Consumption of Chocolate Candy at 12.2 Pounds
    • Chocolate Candy Dominates Retail Sales
    • Non-Seasonal Chocolates Three-Quarters of Mass-Market Chocolate Candy Sales
    • Boxed/Bagged Products Are 45% of Mass-Market Non-Seasonal Chocolate Sales
    • Seasonal Candy Sales
    • Room for Growth
    • Nearly a $17.5 Billion Market by 2005
    • The Marketers
    • Hundreds of Marketers in Field
    • Hershey Leads Chocolate Marketers
    • Strategic Options
    • Godiva Leads in Gourmet Chocolates
    • Most Baking Chocolate Marketers Make Their Own
    • Cocoa, Dessert Toppings Outside the Usual Chocolate Spectrum
    • Marketing & New Product Trends
    • Over 500 New SKUs in 2000
    • Marketing Trends
    • New Product Trends
    • International Trends
    • The National Consumer Advertising Pie
    • Distribution and Retail
    • Candy Is Most Widely Distributed Food
    • Virtually All Warehoused
    • Role of Wholesalers
    • Role of Brokers
    • Market Shares by Retail Sector
    • Figure 1-1: Estimated Share of U.S. Chocolate Market by Retail Channel, 2000 (percent): 7 Retail Channels, All Other
    • Mass Merchandisers Growing Fastest in Sales
    • Gourmet Marketers Establish Presence with Boutiques
    • Online Venues Proliferating
    • The Consumer
    • 81% of Adults Use Candy
    • Heavy Users of Candy Are Blue-Collar Workers, Families with Teens
    • 59% of Households Use Baking Chips/Pieces
    • Instant Hot Cocoa Mixes in 63% of Households
    • Milk Flavorings Used in 46% of Households
    • Half of All Households Use Ice Cream Toppings
  2. The Market
    • Scope of Report
    • Market Definition
    • The International Scene
    • Chocolate Definitions
    • The Chocolate-Making Process
    • Cocoa Powder
    • Chocolate Is Made by Adding Cocoa Butter
    • Varieties of Chocolate
    • Couverture Chocolate
    • Sugar-Free Chocolate
    • Lower-Fat and Reduced-Calorie Chocolate
    • Product Categories
    • Four Product Categories
    • Chocolate Candy
    • Size and Package Classifications
    • Non-Seasonal vs. Seasonal Candy
    • IRI Candy Classifications
    • Chocolate Chips/Baking Chocolate
    • Powdered Cocoa Mixes
    • Chocolate Syrup/Dessert Toppings
    • Table 2-1: Types of Chocolate Candy (6 Types w/Description)
    • Table 2-2: Candy Sizes and Packages (8 Types w/Description)
    • Federal Regulations
    • U.S. Standards of Identity
    • A Fine Line
    • The White Chocolate Controversy
    • Nutrition Labeling Requirements
    • Table 2-3: Allowable Food Claims (7 Terms)
    • Figure 2-1: Estimated U.S. Retail Sales of Chocolate, 1996-2000 (dollars)
    • Market Size and Growth
    • Methodology for Estimates
    • Gourmet/Premium Chocolate Market Difficult to Measure
    • U.S. Retail Sales of Total Chocolate Market $13.7 Billion
    • Total Chocolate Candy Reaches $12.5 Billion
    • Mass-Market Chocolate Sales Top $5.9 Billion
    • Mass-Market Chocolate Candy Sales Approach $4.9 Billion
    • Mass-Market Non-Seasonal Chocolate Candy at $3.6 Billion
    • Mass-Market Seasonal/Assorted Chocolate Candy $1.2 Billion
    • Mass-Market Chocolate Chips/Baking Chocolate at $444 Million
    • Mass-Market Powdered Cocoa Mixes at $349 Million
    • Mass-Market Chocolate Syrup/Dessert Toppings at $262 Million
    • NCA/CMA Members' Shipments of Chocolate Candy
    • DOC Manufacturers' Shipments of Chocolate Candy
    • Per Capita Consumption of Chocolate Candy Increasing
    • Chocolate Candy Imports $371 Million in 1998
    • Chocolate Candy Exports $249 Million in 1998
    • Table 2-4: Estimated U.S. Retail Sales of Chocolate, 1996-2000 (dollars)
    • Table 2-5: Estimated U.S. Retail Sales of Chocolate Candy, 1996-2000 (dollars)
    • Table 2-6: Estimated U.S. Mass-Market Sales of Chocolate, 1996-2000 (dollars)
    • Table 2-7: Estimated U.S. Mass-Market Sales of Chocolate Candy, 1996-2000 (dollars): All Chocolate Candy, Non-Seasonal Chocolate Candy, Seasonal/Assorted Chocolate Candy
    • Table 2-8: Estimated U.S. Mass-Market Sales of Chocolate Chips/Baking Chocolate, 1996-2000 (dollars)
    • Table 2-9: Estimated U.S. Mass-Market Sales of Powdered Cocoa Mixes, 1996-2000 (dollars)
    • Table 2-10: Estimated U.S. Mass-Market Sales of Chocolate Syrup/Dessert Toppings, 1996-2000 (dollars)
    • Table 2-11: DOC Value of Manufacturers' Shipments of Chocolate Candy by Product Type, 1997 vs. 1998 (percent): 5 Product Types
    • Table 2-12: U.S. Per Capita Consumption of Chocolate Candy, 1994-1998 (pounds)
    • Market Composition
    • Candy Accounts for 82% of Mass-Market Chocolate Sales
    • Figure 2-2: Share of U.S. Mass-Market Dollar Sales of Chocolate by Product Category, 2000 (percent): 4 Product Categories
    • Three-Quarters of Mass-Market Chocolate Candy Sales Are of Non-Seasonal Types
    • Boxed/Bagged Products Are 45% of Mass-Market Non-Seasonal Chocolate Sales
    • Table 2-13: Share of U.S. Mass-Market Dollar Sales of Non-Seasonal Chocolate Candy by Product Type, 1996 vs. 2000 (percent): 4 Product Types
    • Halloween Leads Seasonal Candy Sales
    • Seasonal Sales Through Mass-Market Outlets
    • Table 2-14: Share of U.S. Mass-Market Dollar Sales of Seasonal Chocolate Candy by Season, 1996 vs. 2000 (percent): 4 Product Types
    • Novelty Chocolate Candy Sales
    • Dietetic Chocolate Candy
    • Broad Spectrum of Retail Channels
    • Supermarkets Ring Up 24% of Sales
    • Figure 2-3: Estimated Share of U.S. Chocolate Market by Retail Channel, 2000 (percent): 7 Retail Channels, All Other Sales by Region
    • Table 2-15: Regional Usage Indices by Product Type, Spring 2000 (index): 5 Product Types
    • Top Cities for Chocolate
    • Summer Sales Meltdown
    • Chocolate Candy Sales Affected by Annual Calendar
    • Chocolate Consumption by Age Bracket
    • Factors to Market Growth
    • Chocolate Remains Americans' Favorite Flavor
    • …With Room to Grow
    • Demographically a Mixed Market
    • Table 2-16: Projected U.S. Population by Age Bracket, 2000-2010 (number): From Age Under 5 to Age 100 and Over
    • Premium Market Growing
    • Marketers Expanding Premium Lines
    • Expanded Distribution Channels
    • Going Online to Build Sales
    • User-Friendly Packages, Sizes Reflect Eating Patterns
    • Gift-Giving Occasions Abound
    • Tapping the Children's Market
    • Chocolate's Emotional Benefits
    • Chocolate's Health Value
    • Focus on Antioxidant Properties
    • Other Health Findings
    • Negative Perceptions of Chocolate
    • Organic Chocolate Appeals to Social Conscience
    • Ethnic Markets
    • Table 2-17: Population Projections for Selected U.S. Racial Populations, 2000-2020 (number): Non-Hispanic White, Non-Hispanic
    • Black, Hispanic, Asian-American
    • Chocolate Competes with Other Treats
    • Chocolate Chips/Baking Chocolate Win a Little, Lose a Little
    • Powdered Cocoa Mixes Need to Change Image
    • Chocolate Syrup/Dessert Toppings Also Need a Make-Over
    • Commodities Prices Affect Market
    • Trade Sanctions Also Affect Chocolate
    • A Chocolate Shortage?
    • Figure 2-4: Projected U.S. Retail Sales of Chocolate, 2000-2005 (dollars)
    • Market Projections
    • Sales to Approach $17.5 Billion by 2005
    • Chocolate Candy Will Top $15.9 Billion
    • Mass-Market Chocolate Projected at Almost $7.4 Billion
    • Chocolate Candy to Lead Mass-Market Growth
    • Chocolate Chips/Baking Chocolate to Reach $515 Million
    • Powdered Cocoa Mixes Will Crawl Ahead
    • Chocolate Syrup/Dessert Toppings Will Grow Modestly
    • Table 2-18: Projected U.S. Retail Sales of Chocolate, 2000-2005 (dollars)
    • Table 2-19: Projected U.S. Retail Sales of Chocolate Candy, 2000-2005 (dollars)
    • Table 2-20: Projected U.S. Mass-Market Sales of Chocolate, 2000-2005 (dollars)
    • Table 2-21: Projected U.S. Mass-Market Sales of Chocolate Candy, 2000-2005 (dollars)
    • Table 2-22: Projected U.S. Mass-Market Sales of Chocolate Chips/Baking Chocolate, 2000-2005 (dollars)
    • Table 2-23: Projected U.S. Mass-Market Sales of Powdered Cocoa Mixes, 2000-2005 (dollars)
    • Table 2-24: Projected U.S. Mass-Market Sales of Chocolate Syrup/Dessert Toppings, 2000-2005 (dollars)
  3. The Marketers
    • Marketer Overview
    • Hundreds of Marketers in Field
    • Making vs. Marketing Chocolate
    • Most Compete in the Candy Category
    • The Big Three Chocolate Marketers
    • Second Echelon Mass Marketers
    • Regional Favorites
    • Gourmet and Premium Marketers
    • Hundreds of Niche Marketers
    • Organic Marketers
    • International Marketers
    • Recent Mergers, Acquisitions, and Divestures
    • Table 3-1: The U.S. Chocolate Market: Selected Marketers and Their Top Brands (118 Marketers)
    • Table 3-2: Selected International Chocolate Marketers and Their Top Brands (21 Marketers)
    • Marketer and Brand Shares
    • Note on IRI Data
    • Hershey Leads Chocolate Marketers
    • Hershey, Mars Dominate Chocolate Candy
    • Hershey Leads Non-Seasonal Chocolate Candy
    • Hershey and Mars Lead in Boxed/Bagged Chocolates
    • Hershey, Mars, and Nestlé Divide Chocolate Bar Segment
    • Big Three Split Snack-Size Chocolate Candy
    • Russell Stover Dominates Gift-Box Chocolates
    • Hershey Commands 44% of Seasonal Chocolate Candy Sales
    • Nestlé Leads Chocolate Chips/Baking Chocolate
    • Nestlé, ConAgra (Swiss Miss) Lead in Powdered Cocoa Mixes
    • Hershey and Smucker's Lead Chocolate Syrup/Dessert Toppings
    • Mars Dominates Vending Machine Sales
    • Table 3-3: Top Marketers by Mass-Market Share: Chocolate, 2000 (percent): 13 Marketers, All Other Brands, Private Label
    • Table 3-3a: Top Marketers by Mass-Market Share: Chocolate Candy, 2000 (percent): 8 Marketers, All Other
    • Table 3-3b: Top Marketers and Brands by Mass-Market Share: Non-Seasonal Chocolate Candy, 2000 (percent): 6 Marketers, All Other
    • Table 3-4: Top Marketers and Brands by Mass-Market Share: Boxed/Bagged Chocolate Candy, 2000 (percent): 9 Marketers, All Other Brands, Private Label
    • Table 3-5: Top Marketers and Brands by Mass-Market Share: Chocolate Candy Bars, 2000 (percent): 7 Marketers, All Other Brands
    • Table 3-6: Top Marketers and Brands by Mass-Market Share: Snack-Size Chocolate Candy, 2000 (percent): 5 Marketers, All Other Brands
    • Table 3-7: Top Marketers and Brands by Mass-Market Share: Gift-Box Chocolates, 2000 (percent): 7 Marketers, All Other Brands
    • Table 3-8: Top Marketers and Brands by Mass-Market Share: Seasonal Chocolate Candy, 2000 (percent): 7 Marketers
    • Table 3-9: Top Marketers and Brands by Mass-Market Share: Chocolate Chips/Baking Chocolate, 2000 (percent): 7 Marketers, All Other Brands, Private Label
    • Table 3-10: Top Marketers and Brands by Mass-Market Share: Powdered Cocoa Mixes, 2000 (percent): 6 Marketers, All Other Brands, Private Label
    • Table 3-11: Top Marketers and Brands by Mass-Market Share: Chocolate Syrup/Dessert Toppings, 2000 (percent): 6 Marketers, All Other Brands, Private Label
    • The Competitive Situation
    • The Hershey and Mars Rivalry
    • Mainstream Marketers Participate Quietly in Gourmet/Premium Tier
    • Regional Brands Face Distribution Challenges
    • Major Marketers Move In On Seasonal Sales
    • For Some, Smaller Is Better
    • Most Baking Chocolate Marketers Make Their Own
    • Cocoa, Dessert Toppings Outside the Usual Chocolate Spectrum
    • Competitive Profile: Archibald Candy Corp
    • Fanny May, Fanny Farmer, Sweet Factory, and Laura Secord
    • Candy Manufacturing
    • Two-Tiered Brand Strategy
    • Non-Retail Sales
    • Packaging Updates
    • Competitive Profile: Brach's Confections, Inc.
    • Corporate Overview
    • Brach's Sells Andes Candies
    • New Seasonal Partnership with Frankford
    • Product and Retail Diversification
    • Co-Branding and Licensing
    • Chocolate Sales and Shares
    • Brach's Closes Chicago Plant, Strengthens Marketing Focus
    • Competitive Profile: ConAgra, Inc
    • Corporate Background
    • Swiss Miss Cocoa
    • Competitive Profile: Godiva Chocolatier, Inc. (Campbell Soup Co.)
    • Company Overview
    • Godiva Chocolates for U.S. Consumers
    • Product Line Focused on Candy
    • Extending Brand Equity
    • Godiva Boutiques
    • Packaging Focus
    • Investment in Direct Marketing
    • Investment in Advertising
    • Competitive Profile: Hawaiian Vintage Chocolate Co., Inc.
    • Grown in U.S.A.?
    • Hoping to Become the Next Starbucks
    • Functional Chocolates and More
    • Competitive Profile: Hershey Chocolate USA (Hershey Foods Corp.)
    • Corporate Overview
    • #1 U.S. Candy Marketer
    • Hershey's Chocolate Lines
    • Diversification Out of Chocolate
    • Mass-Market Category Shares
    • Expanding Seasonal Presence
    • Some Hits, Some Failures
    • Golden But not Gourmet
    • Hershey's Chocolate Chips, Cocoa, Syrup, and Dessert Toppings
    • Kinks in the System
    • Competitive Profile: Kraft Foods, Inc. (Philip Morris Companies, Inc.)
    • Corporate Overview
    • Kraft in the Chocolate Market
    • Callard & Bowser-Suchard Expanding U.S. Marketing
    • BAKER'S Chocolate
    • Competitive Profile: Lindt & Sprüngli (USA), Inc. (Chocoladefabriken Lindt & Sprüngli A.G.)
    • Corporate Overview
    • Lindt Chocolates
    • Lindt at Retail
    • Lindt Aquires Ghirardelli
    • Ghirardelli Chocolates
    • Eastward Expansion
    • Competitive Profile: M&M/Mars (Mars, Inc.)
    • Corporate Overview
    • At Home and Abroad
    • Candy and Candy-Branded Product Lines
    • Category Shares
    • M&M/Mars Focuses on Individual Brands
    • The Official Candy of the New Millennium
    • Tinkering with Success?
    • Targeting Women
    • Marketing Chocolate's Health Benefits
    • Deluxe Ethel M Chocolates
    • Competitive Profile: Nestlé USA, Inc. (Nestlé S.A., Switzerland)
    • Corporate Overview
    • Nestlé Chocolate Brands
    • Category Shares
    • The Case for Treasures
    • New Candy Introductions
    • Nestlé Flipz for Sweet-and-Salty Snacks
    • From Bugs to Willy Wonka
    • Tapping the Hispanic Market
    • Perugina Upscale Chocolates Reorganizing, Expanding?
    • Nestlé the Category Leader in Chocolate Chips/Baking Chocolate
    • Nestlé's Beverage Division
    • Nestlé Quick Renamed NesQuik
    • Exploring Online Channels
    • Nestlé Reorganizes Confectionery Unit
    • Competitive Profile: R.M. Palmer Co.
    • Seasonal Chocolate Leader
    • Competitive Profile: Russell Stover Candies, Inc
    • Corporate Overview
    • Candy Shares
    • Hershey Challenges Russell Stover on its Turf
    • Seeking a Bigger Bite
    • Whitman's Adds Lines; Pangburn Pares Them
    • License for a New Generation
    • Competitive Profile: Tootsie Roll Industries, Inc
    • Corporate Overview
    • Strong Brand Portfolio
    • Andes Candies Acquisition
    • Distance from Wall Street
    • International Marketer Briefs
    • Barry Callebaut A.G. (Switzerland)
    • Cadbury Schweppes Plc (United Kingdom)
    • Chocoladefabriken Lindt & Sprüngli A.G. (Switzerland)
    • Elite Industries Ltd. (Israel)
    • Ezaki Glico Co. Ltd. (Japan)
    • Ferrero S.p.A. (Italy)
    • Meiji Seika Kaisha Ltd. (Japan)
    • Morinaga & Co. Ltd. (Japan)
    • Nestlé S.A. (Switzerland)
  4. Marketing & New Product Trends
    • Overview
    • Number of New Product Introductions
    • International Markets Overview
    • Mass-Market vs. Premium/Gourmet Positioning
    • Marketing Trends
    • Flavor Trends
    • Selected New Product Introductions
    • Table 4-1: The Chocolate Market: Selected New Product Introductions, 1999-2000
    • International Marketing Trends
    • Market Perspective
    • International Sales
    • Swiss Lead Per Capita Consumption of Chocolate Candy
    • Table 4-2: International Per Capita Consumption of Chocolate Candy by Selected Countries, 1998 (pounds)
    • European Chocolate Standards
    • Factors Driving International Sales
    • Foreign Marketers Seek to Expand U.S. Distribution
    • Trends and Developments in Europe
    • United Kingdom
    • Scandinavia
    • Switzerland
    • France
    • Germany
    • Poland and the Czech Republic
    • Russia and the Ukraine
    • Trends and Developments in Asia and Australia
    • Japan
    • China
    • Australia
    • Trends and Developments in Canada and Latin America
    • Canada
    • Mexico
    • Brazil
    • Mass vs. Class: Mass-Market, Premium, and Gourmet Chocolate
    • Market Perspective
    • Defining Mass-Market Chocolate
    • Defining Premium Chocolate
    • Defining Gourmet Chocolate
    • Premium/Gourmet Market Could Be $1-$2 Billion
    • Line Extensions Tweak Products
    • Package Sizes Accommodate a Range of Retailers
    • A Rose by Any Other Name: Re-Positioning Classic Brands
    • Breaking Down the Boundaries
    • Class Goes Mass
    • Premium/Gourmet Marketers Strengthen Impulse Offerings
    • Gourmet Chocolate Trends
    • Flavor and Product Trends
    • High Octane Chocolate
    • Varietal Chocolates
    • Coffee, Mocha, Added Caffeine… and Tea
    • Peanut Butter and S'Mores
    • Crunchy Textures
    • Chocolate-Covered Salted Snacks
    • Moving to Miniatures
    • Super-Size Products
    • Adult vs. Kids' Products
    • Market Perspective
    • Adult-Targeted Chocolate
    • Touting Chocolate's Health Benefits
    • Kid-Targeted Chocolate
    • Crossovers in Both Directions
    • Targeting Teens with Alternative Means
    • Licensing for Kids and Adults
    • Co-Branding
    • Boxed Chocolates
    • Market Perspective
    • Mid-Tier and Premium/Gourmet Sectors Growing
    • Marketers' PR Campaign Spurs Sales
    • Low-Price Promotions Hurt Industry
    • Seasonal and Novelty Chocolate
    • Market Perspective
    • Seasonal Product Trends
    • Novelty Chocolates
    • Interactive Products/Entertainment Value
    • Niche Positioning
    • Overview
    • Organic Chocolate and Ecological Consciousness
    • "Functional" Chocolates
    • Reduced-Fat Sales Disappointing
    • Sugar-Free Chocolate Candy
    • Chocolate Chips/Baking Chocolate
    • Market Perspective
    • New Baking Chocolates Relatively Rare
    • Powdered Cocoa Mixes
    • Market Perspective
    • Marketing and New Product Trends
    • Chocolate Syrup/Dessert Toppings
    • Market Perspective
    • New Chocolate Syrups
    • New Dessert Toppings: Fat-Free or Decadent
    • Packaging and Technology
    • Packaging Is Key
    • The Gold (and Black) Standard
    • Seasonal Packaging
    • Keepsake and Interactive Packaging
    • Stand Up and Be Counted
    • Consumer Advertising Expenditures
    • National Consumer Advertising Estimated at $369 Million in 1999
    • Mars and Hershey the Top Advertisers
    • Nestle, Ferrero Rocher, Russell Stover, Godiva Form Second Tier
    • M&M's Is Most Heavily Advertised Chocolate Candy Brand
    • Chocolate Syrup, Chips, Cocoa at $21 Million
    • Television, Print Media Popular
    • Advertising Positioning
    • Different Themes for Different Audiences
    • Flavor
    • Make 'em Laugh
    • Tapping into Current Events
    • Time for Celebrating
    • Self-Rewards
    • Some Roads Lead to Romance and Sex
    • Low-Fat Positioning
    • Nostalgia and Comfort
    • History and Tradition
    • Repositioning Established Brands
    • Music-Centered Pitches
    • Sugar-Free Chocolates Use Special Ad Venues
    • Examples of Consumer Advertising
    • Consumer Promotions
    • Coupons
    • Joint Promotions
    • Bonus Packs
    • Samples and Trial Sizes
    • Recipes for Success
    • Free Gifts and Logo Merchandise Offers
    • Books and CD-ROMS
    • Games and Sweepstakes
    • Sports Tie-Ins
    • Traveling Shows
    • Publicity Stunts
    • Alternative Promotions
    • Web Promotions
    • Product Announcements as Promotions
    • Charitable Contributions
    • Examples of Consumer Promotions
    • Trade Advertising and Promotions
    • Small Marketers Rely on Trade Advertising
    • Trade Ad Formats
    • Promotions Are Standard
    • Larger Marketers Favor Co-Op Offers
    • Buyer Incentives
    • Trade Shows Are Vital
  5. Distribution And Retail
    • At the Distribution Level
    • Candy Is Most Widely Distributed Food
    • Virtually All Warehoused
    • Role of Wholesalers
    • Wholesalers' Role Shrinking
    • Distributor Functions
    • C&T Distributors
    • Specialty Food Distributors
    • Candy Brokers
    • Broker Services to Retailers
    • A Hitch in Hershey Distribution
    • Gourmet Chocolate Distribution
    • At the Retail Level
    • Market Shares by Retail Sector
    • Mass Merchandisers Growing Fastest in Sales
    • Most Mass-Market Candy Purchases Made on Impulse
    • Front-End Competition
    • Retail Focus: Supermarkets
    • Sector Overview
    • Chocolate Products at $2.5 Billion in Grocery Stores
    • Losing Ground Against Mass Merchandisers
    • Supermarkets Step Up Merchandising Efforts
    • Supermarkets a Minor Outlet for Upscale Chocolates
    • Retail Focus: Gourmet/Specialty Stores and Department Stores
    • Sector Overview
    • Mid-Priced Candy Chains
    • Gourmet Marketers Establish Presence with Boutiques
    • Geographic Strategies Vary
    • The Upscale Ambiance
    • Elite Brands for Gourmet Food and Kitchenware Stores
    • Department Stores
    • Retail Focus: Mass Merchandisers
    • Sector Overview
    • $3.6 Billion in Candy and Gum Sales
    • Newer Kids on the Block
    • Supercenters Shake Up Grocery Sector
    • Wal-Mart's Foray into Food
    • Candy Merchandising Similar to Supermarkets'
    • Retail Focus: Convenience Stores
    • Sector Overview
    • Candy at 5% of In-Store Sales
    • Sizing Up the Competition
    • The Fix at the Front End
    • Re-thinking Merchandising and Displays
    • Retail Focus: Drugstores
    • Sector Overview
    • Candy Ranks Second Among Drugstore Consumables
    • Larger Formats Step on Drugstore Sales
    • Drugstores vs. Convenience Stores
    • Candy Merchandising and CVS
    • Other Outlets
    • Vending Sales of Candy Bars Rebound
    • Warehouse Clubs
    • Health and Natural Foods Stores
    • Mail-Order and Internet Sales
    • Upscale Cafés
    • Discount Stores
    • Internet Retailing
    • Shopping the Internet
    • Online Retailers Multiplying
    • The Internet Food Shopper
    • Online Shopping Considerations
    • Word-of-Mouth Promotes a Start-Up
    • Corporate Websites
    • Business-to-Business Online
  6. The Consumer
    • Overview of Consumer Data
    • The Simmons Survey System
    • Demographic Data on Chocolate
    • Overall Penetration by Product Type
    • Table 6-1: U.S. Usage Levels for Selected Chocolate Classifications (% adults): 6 Classifications
    • Use of Chocolate Candy
    • Over 80% of U.S. Adults Use Candy
    • Heavy Users of Candy Blue-Collar Workers, Families with Teens
    • Usage Heaviest at Bottom of Age Bracket Ladder
    • The Female and Minority Skew: Examples and Exceptions
    • Singles as Candy Fans
    • Downscale Socioeconomic Slant to Mass-Market Brands
    • Northeast and South Have More Favorites
    • Table 6-2: U.S. Adult Usage Levels for Candy: Overall and by Chocolate Brand/Variety, 2000 (% adults)
    • Table 6-3: Demographic Characteristics Favoring Use of Candy: Users vs. Heavy Users, 2000 (U.S. Adults)
    • Table 6-4a: Demographic Characteristics Favoring Use of Hershey's Reese's Chocolate Candy: Reese's Peanut Butter Cup, Reese's Crunchy Peanut Butter Cup, and Reese's Pieces, 2000 (U.S. Adults)
    • Table 6-4b: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: Hershey's Kisses, Hershey's Hugs, and Hershey's Nuggets, 2000 (U.S. Adults)
    • Table 6-4c: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: Hershey's Almond, Hershey's Milk Chocolate, and Hershey's Special Dark, 2000 (U.S. Adults)
    • Table 6-4d: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: Kit Kat, Almond Joy, and Mounds, 2000 (U.S. Adults)
    • Table 6-4e: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: York Peppermint Patties, Whoppers, and Milk Duds, 2000 (U.S. Adults)
    • Table 6-4f: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: Mr. Goodbar, Krackel, and Heath Bar, 2000 (U.S. Adults)
    • Table 6-4g: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: Rolo, 5 th Avenue, and Bar None, 2000 (U.S. Adults)
    • Table 6-4h: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: Reese's Reese's NutRageous, Cadbury, and Whatchamacallit, 2000 (U.S. Adults)
    • Table 6-4i: Demographic Characteristics Favoring Use of Hershey Chocolate Candy: Sweet Escapes, Symphony, and Skor, 2000 (U.S. Adults)
    • Table 6-5a: Demographic Characteristics Favoring Use of Mars Chocolate Candy: Snickers, 3 Musketeers, and Mars, 2000 (U.S. Adults)
    • Table 6-5b: Demographic Characteristics Favoring Use of Mars Chocolate Candy: M&M's Peanut vs. M&M's Plain, 2000 (U.S. Adults)
    • Table 6-5c: Demographic Characteristics Favoring Use of Mars Chocolate Candy: M&M's Almond vs. M&M's Peanut Butter, 2000 (U.S. Adults)
    • Table 6-5d: Demographic Characteristics Favoring Use of Mars Chocolate Candy: Milky Way, Milky Way Lite, and Milky Way Dark, 2000 (U.S. Adults)
    • Table 6-5e: Demographic Characteristics Favoring Use of Mars Chocolate Candy: Twix Caramel, Twix Peanut Butter, Dove Chocolate Promises, 2000 (U.S. Adults)
    • Table 6-6a: Demographic Characteristics Favoring Use of Nestlé Chocolate Candy: Butterfinger vs. Baby Ruth, 2000 (U.S. Adults)
    • Table 6-6b: Demographic Characteristics Favoring Use of Nestlé Chocolate Candy: Nestlé Crunch, Nestlé Milk Chocolate, and Nestlé Almond, 2000 (U.S. Adults)
    • Table 6-6c: Demographic Characteristics Favoring Use of Nestlé Chocolate Candy: Chunky vs. Alpine White, 2000 (U.S. Adults)
    • Table 6-6d: Demographic Characteristics Favoring Use of Nestlé Chocolate Candy: Oh Henry! vs. 100 Grand, 2000 (U.S. Adults)
    • Table 6-6e: Demographic Characteristics Favoring Use of Nestlé Chocolate Candy: Raisinets vs. Goobers, 2000 (U.S. Adults)
    • Table 6-7a: Demographic Characteristics Favoring Use of Chocolate Candy: After Eight Mints vs. Andes Candies, 2000 (U.S. Adults)
    • Table 6-7b: Demographic Characteristics Favoring Use of Chocolate Candy: Clark Bar vs. Junior Mints, 2000 (U.S. Adults)
    • Table 6-7c: Demographic Characteristics Favoring Use of Chocolate Candy: Toblerone vs. Mon Cheri, 2000 (U.S. Adults)
    • Use of Boxed Chocolates
    • 43% of Adults Use Boxed Chocolates
    • Demographics for Boxed Chocolates
    • Russell Stover and Whitman
    • Downscale Demographics for Cadbury
    • The Special Case of See's
    • The Gift of Godiva
    • Table 6-8a: Demographic Overview of Users of Boxed Chocolates by Brand: Overall, for Gift-Giving, or for Self, 1998 (% adults, median age, median household income)
    • Table 6-8b: Demographic Characteristics Favoring Use of Boxed Chocolates: Overall, Gift-Giving, and for Self, 1998 (U.S. Adults)
    • Table 6-8c: Demographic Characteristics Favoring Use of Boxed Chocolates by Brand: Usage of Any Russell Stover, for Gift-Giving, or for Self, 1998 (U.S. Adults)
    • Table 6-8d: Demographic Characteristics Favoring Use of Boxed Chocolates by Brand: Usage of Any Whitman's, for Gift-Giving, or for Self, 1998 (U.S. Adults)
    • Table 6-8e: Demographic Characteristics Favoring Use of Boxed Chocolates by Brand: Usage of Any Cadbury, for Gift-Giving, or for Self, 1998 (U.S. Adults)
    • Table 6-8f: Demographic Characteristics Favoring Use of Boxed Chocolates by Brand: Usage of Any See's, for Gift-Giving, or for Self, 1998 (U.S. Adults)
    • Table 6-8g: Demographic Characteristics Favoring Use of Boxed Chocolates by Brand: Usage of Any Godiva, for Gift-Giving, or for Self, 1998 (U.S. Adults)
    • Use of Chocolate Chips/Baking Chocolate
    • 59% of Households Use Baking Chips/Pieces
    • Heavy Users Surprisingly Upscale
    • Semi-Sweet Chocolate the Most Popular Flavor
    • Brand Profiles of Baking Chips/Pieces Users
    • Table 6-9: Demographic Characteristics Favoring Use of Baking Chips/Pieces: Users vs. Heavy Users, 2000 (U.S. Adults)
    • Table 6-10: U.S. Adult Usage Levels for Baking Chips/Pieces: Overall and by Brand/Variety, 2000 (% Adults)
    • Table 6-11: Demographic Characteristics Favoring Use of Baking Chips/Pieces: Semi-Sweet vs. Milk Chocolate, 2000 (U.S. Adults)
    • Table 6-12a: Demographic Characteristics Favoring Use of Baking Chips/Pieces: Nestlé Toll House Morsels, Hershey, and BAKER'S, 2000 (U.S. Adults)
    • Table 6-12b: Demographic Characteristics Favoring Use of Baking Chips/Pieces: Nestlé Mini Morsels vs. M&M's Baking Bits, 2000 (U.S. Adults)
    • Use of Hot Cocoa Mixes
    • Instant Hot Cocoa Mixes in 63% of Households
    • Brand Profiles of Instant Hot Cocoa Mix Users
    • Table 6-13: Demographic Characteristics Favoring Use of Hot Cocoa Mixes: All Users, 2000 (U.S. Adults)
    • Table 6-14: U.S. Adult Usage Levels for Hot Cocoa Mixes: Overall and by Brand/Variety, 2000 (% Adults)
    • Table 6-15a: Demographic Characteristics Favoring Use of Hot Cocoa Mixes: Swiss Miss Regular vs. Carnation Regular, 2000 (U.S. Adults)
    • Table 6-15b: Demographic Characteristics Favoring Use of Hot Cocoa Mixes: Nestlé vs. Hershey, 2000 (U.S. Adults)
    • Table 6-15c: Demographic Characteristics Favoring Use of Hot Cocoa Mixes: Swiss Miss with NutraSweet, Carnation Fat Free, and Carnation with NutraSweet, 2000 (U.S. Adults)
    • Use of Milk Flavorings
    • Milk Flavorings Used in 46% of Households
    • Heavy Users
    • Syrup vs. Powder Users
    • Brand Profiles of Milk Flavorings Users
    • Table 6-16: U.S. Adult Usage Levels for Milk Flavorings: Overall and by Brand/Variety, 2000 (% Adults)
    • Table 6-17: Demographic Characteristics Favoring Use of Milk Flavorings: Users vs. Heavy Users, 2000 (U.S. Adults)
    • Table 6-18: Demographic Characteristics Favoring Use of Milk Flavorings: Syrup vs. Powder, 2000 (U.S. Adults)
    • Table 6-19a: Demographic Characteristics Favoring Use of Milk Flavorings: Hershey's Syrup vs. Nestlé Quik Regular, 2000 (U.S. Adults)
    • Table 6-19b: Demographic Characteristics Favoring Use of Milk Flavorings: Hershey's Chocolate Milk Mix, Ovaltine, and
    • Nestlé Quik with NutraSweet, 2000 (U.S. Adults)
    • Use of Ice Cream Toppings
    • Half of All Households Use Ice Cream Toppings
    • Brand Profiles of Ice Cream Toppings Users
    • Table 6-20: U.S. Adult Usage Levels for Ice Cream Toppings: Overall and by Brand, 2000 (% Adults )
    • Table 6-21: Demographic Characteristics Favoring Use of Ice Cream Toppings: All Users, 2000 (U.S. Adults)
    • Table 6-22a: Demographic Characteristics Favoring Use of Ice Cream Toppings: Hershey's Syrup vs. Smucker's, 2000 (U.S. Adults)
    • Table 6-22b: Demographic Characteristics Favoring Use of Ice Cream Toppings: Nestlé Syrup, Kraft, and Mrs. Richardson, 2000 (U.S. Adults)
    • Gift Box Chocolate Surveys
    • Boxed Chocolate Surveys
    • Eating Preferences

    Appendix I: Examples Of Consumer Advertising And Promotions

    Appendix II: Addresses Of Selected Marketers

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